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The Real Good Food Company (The Real Good Food Company) ROE % : -59.48% (As of Sep. 2023)


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What is The Real Good Food Company ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. The Real Good Food Company's annualized net income for the quarter that ended in Sep. 2023 was $-17.7 Mil. The Real Good Food Company's average Total Stockholders Equity over the quarter that ended in Sep. 2023 was $29.8 Mil. Therefore, The Real Good Food Company's annualized ROE % for the quarter that ended in Sep. 2023 was -59.48%.

The historical rank and industry rank for The Real Good Food Company's ROE % or its related term are showing as below:

RGF' s ROE % Range Over the Past 10 Years
Min: -745.28   Med: -387.34   Max: -29.4
Current: -46.09

During the past 4 years, The Real Good Food Company's highest ROE % was -29.40%. The lowest was -745.28%. And the median was -387.34%.

RGF's ROE % is ranked worse than
94.07% of 1820 companies
in the Consumer Packaged Goods industry
Industry Median: 6.315 vs RGF: -46.09

The Real Good Food Company ROE % Historical Data

The historical data trend for The Real Good Food Company's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Real Good Food Company ROE % Chart

The Real Good Food Company Annual Data
Trend Dec19 Dec20 Dec21 Dec22
ROE %
- - -745.28 -29.40

The Real Good Food Company Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -33.71 -32.08 -43.20 -51.93 -59.48

Competitive Comparison of The Real Good Food Company's ROE %

For the Packaged Foods subindustry, The Real Good Food Company's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Real Good Food Company's ROE % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Real Good Food Company's ROE % distribution charts can be found below:

* The bar in red indicates where The Real Good Food Company's ROE % falls into.



The Real Good Food Company ROE % Calculation

The Real Good Food Company's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=-10.982/( (39.553+35.15)/ 2 )
=-10.982/37.3515
=-29.40 %

The Real Good Food Company's annualized ROE % for the quarter that ended in Sep. 2023 is calculated as

ROE %=Net Income (Q: Sep. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Sep. 2023 ))/ count )
=-17.744/( (31.054+28.605)/ 2 )
=-17.744/29.8295
=-59.48 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2023) net income data. ROE % is displayed in the 30-year financial page.


The Real Good Food Company  (NAS:RGF) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2023 )
=Net Income/Total Stockholders Equity
=-17.744/29.8295
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-17.744 / 222.26)*(222.26 / 145.2855)*(145.2855 / 29.8295)
=Net Margin %*Asset Turnover*Equity Multiplier
=-7.98 %*1.5298*4.8705
=ROA %*Equity Multiplier
=-12.21 %*4.8705
=-59.48 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2023 )
=Net Income/Total Stockholders Equity
=-17.744/29.8295
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-17.744 / -52.484) * (-52.484 / -35.456) * (-35.456 / 222.26) * (222.26 / 145.2855) * (145.2855 / 29.8295)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.3381 * 1.4803 * -15.95 % * 1.5298 * 4.8705
=-59.48 %

Note: The net income data used here is four times the quarterly (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


The Real Good Food Company ROE % Related Terms

Thank you for viewing the detailed overview of The Real Good Food Company's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Real Good Food Company (The Real Good Food Company) Business Description

Traded in Other Exchanges
N/A
Address
3 Executive Campus, Suite 155, Cherry Hill, NJ, USA, 08002
The Real Good Food Company Inc is an innovative, high-growth, branded, health- and wellness-focused frozen food company. It develops, markets, and manufactures delicious and convenient comfort foods designed to be high in protein, low in sugar, and made from gluten- and grain-free ingredients that are intended to be sold in the health and wellness segment of the frozen food category. All of its revenue is derived from the United States.
Executives
Bryan T. Freeman director, 10 percent owner, officer: See Remarks 3 EXECUTIVE CAMPUS, SUITE 155, CHERRY HILL NJ 08002
David Kanen 10 percent owner 6429 NW 65TH WAY, PARKLAND FL 33067
Philotimo Focused Growth & Income Fund 10 percent owner, other: See Explanation of Responses 5850 CORAL RIDGE DRIVE, SUITE 309, CORAL SPRINGS FL 33076
Kanen Wealth Management Llc 10 percent owner, other: See Explanation of Responses 5850 CORAL RIDGE DRIVE, SUITE 309, CORAL SPRINGS FL 33076
Philotimo Fund, Lp 10 percent owner, other: See Explanation of Responses 5850 CORAL RIDGE DRIVE, SUITE 309, CORAL SPRINGS FL 33076
Mark Joseph Nelson director LOCAL BOUNTI CORPORATION, 220 W MAIN STREET, HAMILTON MT 59840
Gerard Garfield Law director, officer: See Remarks 3 EXECUTIVE CAMPUS, SUITE 155, CHERRY HILL NJ 08002
De Cardenas Gilbert B. director 3 EXECUTIVE CAMPUS, SUITE 155, CHERRY HILL NJ 08002
Akshay Jagdale officer: Chief Financial Officer 3 EXECUTIVE CAMPUS, SUITE 155, CHERRY HILL NJ 08002
Strand Equity Partners Iii, Llc 10 percent owner 1888 CENTURY PARK EAST, SUITE 1440, LOS ANGELES CA 90067
Josh Schreider 10 percent owner 3 EXECUTIVE CAMPUS, SUITE 155, CHERRYL HILL NJ 08002
Awm Investment Company, Inc. 10 percent owner 527 MADISON AVENUE, SUITE 2600, NEW YORK NY 10022
Andrew J Stiffelman 10 percent owner, officer: See Remarks 3 EXECUTIVE CAMPUS, SUITE 155, CHERRY HILL NJ 08002
Deanna T Brady director 1 HORMEL STREET, AUSTIN MN 55912
Seth Rodsky 10 percent owner 1888 CENTURY PARK EAST, SUITE 1440, LOS ANGELES CA 90067